Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Venezuela Law, and Not Foreign Law, Applied to Employment Contract Signed in Embassy in Venezuela

Precedential Decision by Judiciary or Regulatory Agency

Author: Daniel Jaime, Associate – Littler

On March 10, 2023, the Supreme Court ruled that the Venezuela Labor Law applies to employment agreements signed by a foreign employee in an embassy located within Venezuelan territory. In this case, the foreign employee, who was a secretary providing services as part of the diplomatic mission of an embassy in Venezuela, was a foreigner and signed the employment agreement in a foreign territory and under international private law. However, the Supreme Court ruled that local law applied, and not foreign law, because the jurisdiction of Venezuelan courts was already set by the Supreme Court before the procedure began.

Supreme Court Ratifies Foreign Currency Payment to Employees

Precedential Decision by Judiciary or Regulatory Agency

Author: Gabriela Arevalo, Associate – Littler

The Social Chamber of the Supreme Court issued Decision No. 63, dated March 10, 2023, ratifying a previous ruling, holding that payment of the salary in foreign currency is valid. The Court also ratified that indexation to convert the foreign currency into Bolivars does not apply since foreign currency is an adjustment mechanism or stabilization of the pecuniary obligation against possible variations in the internal value of local currency.

Additionally, this decision ratified that the interest rates set by Central Bank of Venezuela (CBV) cannot be applied to calculate interest to the amounts in foreign currency. Therefore, foreign currency should be converted to Bolivars at the official exchange rate to calculate interests for payment delay at the active rate of CBV.

Proposed Law for Workers with Disabilities

Proposed Bill or Initiative

Author: Daniela Arevalo, Associate – Littler

The National Assembly of Venezuela approved a new Law for Workers with Disabilities on January 24, 2023, and submitted it to the President of the Republic for signature. The National Assembly commented that the new law aims to regulate the means and mechanisms that guarantee the inclusion, protection, defense, attention and integral development of workers with disabilities, in a full and autonomous manner according to their capacities and abilities, in equal conditions and equality of opportunities, ensuring the full, dignified, and fair integration to the social process of work without discrimination or prejudice of any kind.